2. Amaliy mashg‘ulotlari 1- jadval № Amaliy mashg‘ulotlar mavzulari

The WTO 
During the worldwide depression of the 1930s, when one nation raised its 
tariffs to protect its industries, other nations retaliated by raising their tariffs. In 
1947, most of the world’s industrialised nations mutually agreed to end the 
tariff wars by signing the 
General Agreement on Tariffs and Trade (GATT). 
The 
General Agreement on Tariffs and Trade, an internationally organization set up 

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in 1947, had the objectives of encouraging international trade, of making tariffs 
the only form of protectionism, and of reducing these as much as possible. The 
most favoured nation clause 
of the GATT agreement specified that countries 
could not have favoured trading patterns, but had to grant equally favourable 
conditions to all trading partners. The final GATT agreement – including 
services, copyright, and investment, as well as trade in goods – was signed in 
Marrakech in 1994, and the organization was superseded by the World Trade 
Organization (WTO).
It took nearly 50 years to arrive at the final GATT 
agreement because until the 1980s, most developing countries opposed free 
trade. They wanted to industrialize in order to counteract what they rightly saw 
as an inevitable fall in commodity prices. They practised import substitution 
(producing and protecting goods that cost more than those made abroad), and 
imposed high tariff barriers to protect their infant industries. Nowadays the 
WTO has more than 130 members, with membership conditional on countries 
following trade policies of a broadly free-trading nature. The WTO is staffed by 
an international team of trade specialists. It can influence international trade 
discussions, almost always in a free-trade direction, although on controversial 
issues member governments are likely to dig in their heels before making any 
compromises or deals. In the umpiring role, the WTO Dispute Settlement Body 
can intervene when one country accuses another of breaking agreed WTO rules. 
It normally does this by initiating some sort of protectionist measure. Like the 
GATT the WTO provides a forum for multilateral trade negotiations; conducts 
reviews of member country trade policies; and cooperates with the World Bank 
and the International Monetary Fund (IMF) in an attempt to achieve greater 
coherence in global economic policy making. 
Ex. 1. Complete the paragraph, use the following terms: 
Free trade protectionism tariffs customs duties quotas 
imports exchange rates 

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The WTO was set up in 1995 to encourage free trade in the global market 
place. It is therefore designed to resist … . No new barriers to trade can be set 
up, and governments cannot set new … or … or increase ones that already exist 
as there are really taxes that prevent … . Similarly the WTO opposes the 
use of … since these limit the amount of … coming into a country. This may 
protect a country’s industry in the short term, but if its trading partners reply 
with similar measures, then … will suffer. The WTO governs trade in many 
products and raw materials, but the world of finance is largely outside of its 
scope, therefore it has no control over … .